ANNUITIES

Most simply, an annuity is a contract issued by an insurance company that allows you to invest money for the long-term and accumulate earnings on a tax-deferred basis. This means that interest accumulates free from federal, state, and local taxes until you withdraw money from your account, usually at retirement. Money withdrawn prior to age 59½ is generally subject to a 10% Federal income tax penalty as well as ordinary income taxes.

Annuities are unique investments in that they are specifically designed to generate retirement income you won't outlive, making certain there is a steady stream of income to assist you in achieving a comfortable retirement.

FIXED ANNUITIES

Fixed annuities, when added to a portfolio, provide a conservative way to grow retirement funds. Each fixed annuity locks in an initial interest rate for the term that you choose. After the initial rate guarantee period, renewal rates are declared each year on the contract's anniversary date. Renewal rates are guaranteed never to fall below the guaranteed minimum interest rate, which is stated in the contract, regardless of future economic conditions. With a fixed annuity, your principle will be guaranteed by the financial strength of the insurance company. Many products offer a first year bonus rate or rate tiers, which give additional interest earnings depending on annuity accumulation. Fixed annuities are long-term vehicles for retirement that also provide tax-deferred growth, access to money, and income options for retirement.

The benefits of tax-deferral in an annuity do not apply to contracts purchased as an Individual Retirement Annuity (IRA) or inside some other tax-qualified retirement plan because these plans already have tax-deferred status.

Early withdrawal and surrender charges may apply. Withdrawals may be subject to a 10% federal penalty tax if made before 59½ and are subject to qualified plan provisions.

This material is authorized for prospective investors only when preceded or accompanied by a current prospectus and underlying fund prospectuses containing more complete information including all charges and expenses, such as the withdrawal charges and mortality and expense risk charges. Read all prospectuses before investing.

The principal is guaranteed by the strength of the issuing life insurance company.

Annuities are long-term vehicles designed for retirement purposes. Withdrawals of taxable amounts are subject to income tax.

NOT FDIC/NCUA INSURED NO BANK/CREDIT UNION GUARANTEE NOT A DEPOSIT NOT INSURED BY ANY FEDERAL GOVERNMENT AGENCY

if you would like additional information regarding annuities, please contact an Allied Roth licensed insurance professional.

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